Technical Analysis – EURUSD meets 200-period SMA and tests 0.9900

EURUSD is underperforming after the pullback off the 200-period simple moving average (SMA) around 0.9920. The pair is approaching the near-term uptrend line near the 0.9900 psychological mark and the 20-period SMA. The RSI is sloping south in the bullish area; however, the stochastic is still moving higher after the bullish cross within the %K and %D lines.

Should weakness extend below the uptrend line, support to downside movements could be initially detected within the 0.9835 barrier. Clearing that zone, the next stop could be around the 50-period SMA at 0.9765 and the 0.9735 support.

Alternatively, the pair needs to overcome the 200-period SMA to meet a key barrier between the parity level. The 1.0150 mark could act as resistance too before the 1.0186-1.0200 restrictive region.

In the short-term picture, the sentiment turned bullish after the price rebounded off the 20-year low of 0.9535. The positive slope in the 20-period SMA, which moves closer to the 200-period SMA, also adds optimism for a brighter outlook.

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